Govt sees strong growth ahead in industries
Govt sees strong growth ahead in industries
The Jakarta Post, Jakarta
Betting on a return of investment, the government is
forecasting that the country's industrial production capacity
will grow by an average 8.1 percent per year in the next four
years.
The projection, based on research by the Ministry of Trade and
Industry, is far greater than the industrial growth posted in the
past three years, which averaged less than 4 percent, which the
ministry has blamed on a scarcity of investment.
"If materialized, it could significantly reduce unemployment,
which this year stands at 11.6 million," head of the ministry's
research and development body Agus Tjahajana said as quoted by
Antara on Tuesday when unveiling the National Industrial
Development Policy -- a concept set out by the ministry to be
officially launched prior to the end of the current
administration's term.
He added, however, that the research was not final, as it
first had to be discussed with relevant ministries or state
agencies overseeing respective sectors.
As a comparison, national industry (excluding the oil and gas
sector) recorded an average growth of 3.95 percent, 3.68 percent
and 3.38 percent in 2001, 2002 and 2003, respectively.
This, analysts said, contributed to the nation's modest
economic growth of 3 percent to 4 percent during that period.
Investment has been in the doldrums for several years, with
foreign investors complaining about, among other things, legal
uncertainty, lack of security and rampant red-tape.
But boosted by the projected trouble-free elections, Agus
predicted a return of investment -- both domestic and offshore --
starting in the third quarter of the year as confidence in the
country improved.
In 2005 for instance, he added, many sectors would likely
record rapid growth such as food and beverage production, which
is likely to expand by 6.5 percent, while growth in the textile
industry could reach 6 percent.
Other sectors expected to experience growth include wood and
other forest products at 8.5 percent, paper and printed materials
at 9.5 percent, fertilizer and chemical products at 11.2 percent,
cement and non-metal mining products at 9.2 percent, iron and
steel at 6 percent, machinery and other heavy equipment at 11.2
percent.
In another part of the report, Agus cited a lack of skilled
workers as the main challenge to industrial development.
"So far, our manpower is dominated by those with a low-level
of skills. At present, workers who did not finish elementary
school make up 77.7 percent of our manpower structure."